This is the basic premise of performance management in any organisation. How else would an organisation identify between the top and poor performers? How else the hard-working and smart employees would make themselves stand out for their efforts? How else can the organisation train bottom performers to do better work?

While performance management has always been under the scanner for its traditional practices, the other side of the coin inclines in its favour. Here are some advantages it brings to organisations.

Set Goals

Like a sailor needs a compass for direction, an employee needs goals to work towards the organisation’s vision. Goal setting is the first exercise in the overall performance management process. When key responsibility areas are in place, it becomes easier to evaluate the performance delivered by the employee.

Motivate Employees

Performance management is a motivation booster since it gives opportunities to employees to receive applauds for their efforts. Most organisations have a reward and recognition program through which they give cash bonuses, incentives, certificates or public ovation to deserving candidates. As a result, it not only boosts the morale of top-performing employees, but also gives motivation to the bottom performers to prove themselves.

Staff Development

All fingers are not the same. Some people excel, some lag behind. Performance management helps organisations to identify the skill gaps and train employees accordingly to get the best output. Even if employees are performing well, they may need enhanced skills to advance their careers. Performance management addresses all such concerns related to staff development.

Learning and Development (L&D) is a crucial branch of people management on which you can dig out more information through human resources courses online.

Create Sense of Fairness

Unlike the popular myth that performance management is a biased exercise, it tends to promote an atmosphere of equality in the organisation. Performance management is the way to communicate to employees that everyone stands at an equal level for the organisation and there is no secrecy about rewarding well-performing candidates.

Handle Firing Risks

The employees who have been consistently underperforming in spite of continuous training and mentoring at some point in time require being eliminated. Or else, their presence can hamper the productivity of the organisation and lower the morale of other employees. Performance management enables organisations to document an employee’s performance so that ‘firing’ situations can be tackled with empathy. It allows terminating the relationship without any ill feelings.

Performance management is a highly specialized field of human resources. It is recommended that you do the strategic performance management certification course to give an edge to your career profile.